The finance and tech sector is becoming an increasingly strong job and growth driver in Germany. German FinTechs raised EUR 2.1 billion in capital in the first half of 2021 alone, two-thirds of it in Berlin. The capital has now even established a leading role in Europe as a digital financial center, attracting investors, capital and talent from all over the world.
However, the brief study published by the Berlin Finance Initiative also shows that the industry has a lot of catching up to do when it comes to (gender) diversity: The proportion of women in the founding teams of the 20 largest German FinTechs is only four percent, and the management teams have only three percent women. In an intra-European comparison, Germany is thus far behind.
“I seldom still experience systems – investors included – that are as homogeneous as the FinTech industry. The talent pool is not optimally exploited and many women are discouraged. The business location is missing out on far too much potential.”,
says Dr. Philine Sandhu, author of the short study and lecturer at the Berlin School of Economics and Law.
Achim Olegarth, co-author of the study and founder of the Berlin Finance Initiative, affirmed: “Our study clearly shows that role models and a broad package of measures are necessary to see more women as founders and managers in the finance industry. For the industry, this brings a wide range of opportunities.”
To address the structural underrepresentation of women in FinTechs, the brief study recommends extensive measures:
- Generate data and create transparency
- Make gender diversity a prerequisite for (public) funding
- Make the industry commit to more (gender) diversity
- Establish a talent pipeline that is consistent and non-discriminatory
- Expand industry networking and establish startup funds for women.
For the full “2021 Diversity For Growth” study, click here.